Islamabad, August 11, 2025: The federal government is expected to cut petroleum product prices from August 16, offering relief to consumers as global crude oil prices continue to slide.
Over the past 11 days, Brent crude has dropped by $5.72 to $65.98 per barrel, while US crude has fallen by $5.71 to $63.48 per barrel. Officials said the revised domestic prices will be announced on August 15 and take effect the following day.
The anticipated cut follows a mixed price adjustment earlier this month, when the government reduced petrol by Rs7.54 per litre but raised high-speed diesel (HSD) by Rs1.48 per litre for the August 1–15 period, setting rates at Rs264.61 for petrol and Rs285.83 for HSD.
Petrol powers motorcycles, rickshaws, and small vehicles—directly impacting the working class—while HSD fuels heavy transport, agricultural machinery, and railways, with any increase pushing up food and transport costs.
Oil sector sources had earlier predicted a larger drop of nearly Rs9 per litre for petrol and Rs3.50 for diesel, citing lower international prices and a sharp cut in import premiums, with petrol’s premium falling from $9.70 to $6.75 per barrel.
Despite zero GST, the government continues to collect almost Rs98 per litre on both petrol and diesel through levies, including Rs78.02 per litre on petrol and Rs77.01 on diesel in petroleum and climate support levies, plus Rs20–21 as customs duty.
Meanwhile, the Oil and Gas Regulatory Authority (Ogra) has slashed liquefied petroleum gas (LPG) prices by Rs17.7 per kilogramme, setting the new consumer price for an 11.8kg cylinder at Rs2,541.36—down from Rs2,750.6 in July. This marks the third consecutive monthly drop, following Rs2,838.31 in June and Rs2,892.91 in May. The cut is attributed to changes in the Saudi Aramco Contract Price and the exchange rate.
However, regulatory concerns persist. A parliamentary panel recently warned that of 2,000 bowsers transporting LPG nationwide, only 800 are registered with the Department of Explosives and just 247 licensed by Ogra, calling the situation “a regulatory disaster in waiting.”
